[ibarea277]

It's somewhat hard to calculate the correlation because VC is so illiquid, but for sure it provides diversity and has historically been an excellent investment. The variance across VCs is also huge relative to other types of asset managers, so you have the potentially for really obscene returns. If you have enough money that you don't need to be liquid it is a good investment.

[mattnewport]

What you're describing doesn't sound like a particularly good investment. You replace the problem of picking stocks with the problem of picking VCs and have less liquidity. You have the potential for really obscene returns picking stocks too but there's no real reason to think picking VCs is any easier.

[ibarea277]

That is correct. There are not ETFs for these kinds of investment classes, so similar to hedge funds you would need to believe that you are capable of picking the right managers. You also need to be an accredited investor to gain access, and funds like A16Z mostly take institutional money (endowments/sovereign wealth funds etc). Like hedge funds, management fees are very high. But folks want the allure of pre-ipo tech companies...